Magwero land controversy

Illegal land deal at Magwero

-Questions over governance and transparency

By Kondwani Nyondo

The controversial transfer of over 417 hectares of prime industrial land at Area 55, also known as Magwero Industrial Park, has ignited serious concerns about governance, legality, and the erosion of public trust in Malawi’s investment institutions.

Originally designated for industrial development under the mandate of the Malawi Investment and Trade Centre (MITC), this large parcel of land in the capital city was expected to attract investors under transparent and legally compliant procedures. 

However, internal sources reveal a shadowy deal involving the Office of the President and Cabinet (OPC), a Special Purpose Vehicle (SPV), and an Indian company, ARISE, which has majority ownership in the SPV.

According to docoments in our position, legal opinions obtained from the Attorney General’s office and private legal firm Mbendera and Nkhono Associates, the transfer of the land to the SPV with ARISE holding more than 65% shares—leaving government with just 35%—was done in violation of national laws and investment regulations.

Documents and insider accounts indicate that the OPC bypassed MITC’s authority and pushed through the deal without proper due diligence or adherence to established procedures. The SPV signed for the land at no cost, contrary to the legal requirement for fair valuation and transparent negotiation.

Tensions escalated when Paul Kwengwere, the then CEO of MITC, refused to renew contracts and renegotiate terms that favored the Indian company’s demands, including a 99-year lease for the land—almost double the maximum 50 years stipulated by Malawian law.

Following this, Kwengwere was abruptly removed from his position. In his place, Kruger Phiri suddenly appeared at MITC, presenting himself as the new CEO without a formal recruitment process, which raised eyebrows over procedural irregularities. The board later advertised the position after Phiri had already assumed office—contradicting corporate governance norms requiring board approval and minutes for such appointments.

Further investigations reveal that loyal directors and officials who resisted the questionable deal faced intimidation and contract termination. These “patriotic individuals,” as insiders describe them, were sidelined for standing against what they perceived as a misuse of public assets.

“The entire process lacks transparency and undermines the rule of law,” said a legal expert familiar with the case. “Proper procedures involving fair competition, valuation, and board oversight appear to have been ignored.”

This incident casts a shadow on Malawi’s broader investment climate, with implications for governance, investor confidence, and public resource management. Observers warn that such dealings may discourage responsible investors and entrench corruption.

Calls are mounting for an independent inquiry into the land transfer at Magwero Industrial Park and the appointments at MITC to restore accountability and uphold the rule of law.

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